The company applies overhead on the basis of direct labor $s. Budgeted MOH = $120,000, budgeted material $'s = 90,000, budgeted labor hours = 5,000 and budgeted direct labor $'s = $50,000. Additions to WIP for the period include: Direct material = $80,000 and direct labor = $40,000. Actual overhead = $200,000.

Compute the company's predetermined overhead rate (POHR).

Group of answer choices

$2.40 per direct labor $

$2.50 per direct material $

$4.00 per direct labor $

$24.00 per direct labor hours